Even in the march of ‘Cell Korea’… Foreigners who are involved in banking and telecommunication
Foreign investors continue the flow of ‘sell Korea’.
According to the Korea Exchange, foreigners net sold about 7.6 trillion won worth of Korean stocks in the first quarter of this year. Even into April, the stock continues to sell. From April 1 to 21, the net selling amount was about 3.81 trillion won. This is quite different from net purchases worth 3 trillion won or more in the fourth quarter of last year.
In the midst of this sell-off, banking stocks and telecommunication stocks are net buying, attracting attention.
Four of the top 10 net buying stocks from the beginning of the year to April 21 were bank stocks. KB Financial Group, Woori Financial Group, Hana Financial Group, and Shinhan Financial Group were ranked in the top 10. Industrial Bank of Korea also ranked 20th. It is analyzed that the buying trend was concentrated as the Bank of Korea Monetary Policy Committee accelerated rate hikes amid the high performance of banks. The Monetary Policy Committee, which lowered the base rate to 0.5% during the pandemic, raised interest rates by 0.25 percentage points each in August and November last year, and four times in January and April of this year.
The financial industry is expected to continue raising prices for a while. Inflation is rapidly rising, and there is a high probability that the US will raise the interest rate by 0.5 percentage points at a time in a ‘big step’ hike in May. There are concerns that raising interest rates too quickly could slow the economy, but it weighs on the opinion that there are not many options.
Telecom stocks were also flooded with money. SK Telecom ranked 8th and KT 9th. It is analyzed that foreign investors are interested in the company’s traditional economic defense stock, earnings growth on the back of an improvement in the telecommunication industry, and expectations for a dividend increase. Kim Hong-shik, an analyst at Hana Financial Investment, said, “It is believed that SKT and KT recorded first-quarter earnings that exceeded the level initially expected by the securities market. The upward trend is expected to continue during the earnings season.”
Except for banking stocks and telecom stocks, LG Chem and Classys made it into the top 10. LG Chem’s share price has been sluggish recently due to the issue of LG Energy Solution’s physical spin-off and sluggish business conditions as a major player in the chemical industry. It surpassed 1 million won in January of last year, but has continued to decline since then, and as of mid-April this year, it is trading at around 500,000 won. The analysis that the stock price was undervalued puts weight on the analysis that the money was rushed. Classys is a cosmetic medical device company. The main product is a skin lifting device called ‘Shrink’. It is said to be expected to benefit from the re-opening (the reopening of the economy).
Correspondent Kim Ki-jin
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]